For investors looking for regular income and potential growth, dividend stocks offer the perfect mix. The best dividend stocks manage not only to grow their businesses over time but also share their wealth by boosting their quarterly dividend payments year in and year out.
Some dividend stocks have gotten so predictable with their annual dividend increases that shareholders can have a really good idea of when they're likely to see each increase. Here, we'll go into more detail about how Colgate-Palmolive (CL +1.54%), General Dynamics (GD 2.05%), and Procter & Gamble (PG +1.42%) are likely to give their shareholders a nice boost in their quarterly payouts soon.
Putting a smile on your face
Colgate-Palmolive has put together an amazing streak of rising dividends that goes back for 57 years. The maker of toothpaste, dishwashing soap, and other household consumer goods has built up valuable brand loyalty and a strong customer base across the globe. Colgate-Palmolive's 2.3% dividend yield isn't extremely high, but it does exceed the market average, and its cash flow has been strong enough to support rising payments for decades.
Image source: Colgate-Palmolive.
Colgate-Palmolive typically announces its dividend increases around mid-March. Last year's $0.01 per share increase to bring the quarterly payout to $0.43 per share wasn't a huge boost, and investors should probably expect a similarly minimal increase this time around. Nevertheless, reliable demand and efforts to broaden its customer base should help Colgate-Palmolive keep growing over the long run.
Defending its dividend
General Dynamics is a major player in the defense industry, and the contractor has done a good job of winning its fair share of contracts from the U.S. government. In addition to selling tanks, armored vehicles, and various ships and submarines to the military, General Dynamics is also a big manufacturer of corporate jets through its Gulfstream division. Times have been good for the company lately, and it's been able to share its prosperity with its shareholders through dividend increases.
General Dynamics' most recent payout hike came in early March 2019, which brought a $0.09 per share boost to the quarterly dividend to bring it to $1.02 per share. A similar 10% increase could add another $0.10 per share to the quarterly payout for 2020. With a yield of 2.2%, General Dynamics shareholders would appreciate the hike, especially if it signaled continued strength for the defense contractor.
Pampering you with dividends
Finally, Procter & Gamble is the company behind some of the best-known household brands in the world. With Tide detergent, Pampers diapers, Crest toothpaste, and a host of other billion-dollar brands, P&G has dominated the consumer goods space for a long time. It's also produced impressive share-price gains along the way, and tapping into the rise of the consumer class globally has been a big source of growth for the products giant.
Procter & Gamble has an impressive 63-year streak of making annual dividend increases, and they typically come in early April. Last year's boost of 4% brought the current payout to the somewhat odd amount of $0.7459 per share, and a similar increase could send the quarterly dividend to around $0.775 per share this year. With a yield of 2.4%, P&G offers a solid dividend along with the chance to grow along with emerging economies around the world.
Tap into higher dividends
Many investors wait until companies actually announce their dividend increases before they invest. But if you want to get in before the crowd, it pays to know about companies that have reliably delivered higher payouts in the past. With strong dividend stocks like P&G, General Dynamics, and Colgate-Palmolive in your portfolio, you'll get a nice mix of solid dividend income and good growth prospects for the future.
